The Reserve Bank of India (RBI) has granted an authorised dealer-I (AD-I) licence to AU Small Finance Bank, the small financier said in an exchange filing on Wednesday.
“We wish to inform you that the Reserve Bank of India vide its letter dated 19th April, 2023 has granted licence to act as authorised dealer Category-I (AD-I) under Section 10 of FEMA, 1999 to deal in foreign exchange, subject to compliance of applicable regulations in this regard,” the filing said.
The licence will enable AU Small Finance Bank to open a range of foreign currency-related products to serve the importer-exporter segment, and process inward and outward remittances.
Recently, the central bank had approved the re-appointment of Sanjay Agarwal as managing director & CEO of the bank for three years. The re-appointment is valid with effect from April 19 till April 18, 2026, AU Small Finance Bank said in a statement. Besides this, it said the regulator has also cleared the re-appointment of Uttam Tibrewal as the whole-time director for a period of three years.
Attaining an AD-I license is key to the bank’s prospects going ahead, analysts had said. The central bank on Wednesday also granted an authorised dealer-I licence to Equitas Small Finance Bank.
— With PTI inputs